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Trump set to 'STOP' Chinese companies investing in US as relations PLUMMET amid trade war

Donald Trump is set to stop Chinese companies from investing in US technology firms (Image: GETTY)

DONALD Trump is set to stop Chinese companies from investing in US technology firms and plans to block additional technology exports to China, as relations between Beijing and Washington plummet amid a tit-for-tat trade war.

The two measures are set to be announced at the end of the week and are intended to counter Beijing's Made in China 2025, which is an initiative launched by the Chinese to be a global technology leader.

The US Treasury is putting together plans to block companies with at least 25 percent Chinese ownership from buying companies involved in "industrially significant technology".

The Wall Street Journal also reported the National Security Council and the Commerce Department are also drawing up plans for tighter export controls which will prevent "industrially significant technology" to be exported to China.

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Industry groups, especially in the finance and technology sectors, have been trying to track the progress of the proposal as it goes through various iterations in the administration.

The groups are mainly concerned the exports could negatively impact businesses by preventing them from utilising their technological edge.

Although many object to the investment restrictions, they are likely to have less impact because Chinese investment in US firms has decreased so drastically.

Most of the industry lobbying has been focused on Congress, who are debating how to strengthen national-security for foreign investment.

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The US plans to use the International Emergency Economic Powers Act of 1977 (IEEPA) to impose the investment restrictions.

On May 29 The White House said the Trump administration would press ahead with restrictions on investment by Chinese companies in the US as well as export controls for goods exported to China, with details to be announced by June 30.

They also said it would unveil a revised list of Chinese goods for tariffs, which it did on June 15.